6.30) A potato chip company is considering including a new process machine for their factory. The machine costs $350,000 installed and will generate additional given revenues of $100,000 per year and will save $60,000 per year in labor, and wasted potatos. The machine will be financed by a $150,000 bank loan repayable in three equal annual principal installments, plus 10% interest in the outstanding balance. The machine has a CCA rate of 30%. The useful life of the machine is 10 years, after which it will be sold for $40,000. The combine marginal tax rate is 40%.

part a)Find the year by year after tax cash flow for the project

part b)At a MARR of 12%, is the project economically justifiable?